Real Estate WEALTH Magazine Real Estate WEALTH Magazine - DOWNLOAD IT HERE! | Page 107

T
he current political
climate and economic
uncertainty has, in
a way, benefited the
small- and medium-
sized business owner. Proposed
changes to the tax code, cutting
taxes for some and increasing
it for others have entrepreneurs
looking closer at the way their
business is set up. This self-in-
quiry, this reflection, is the first
step in finding the answers to
build your business on a solid
foundation.
Fortune DNA, a boutique Las
Vegas, Nevada structuring com-
pany, focuses on custom-build-
ing corporate entities for their
clients depending on their clients’
specific needs. Many entrepre-
neurs, even experienced ones,
are unsure, which type of entity
best allows them to achieve their
short-term and long-term goals.
Corporations address certain
issues differently than partner-
ships, and although an LLC is a
modern amalgamation of the two,
an LLC has its own unique set of
benefits and detriments. Fortune
DNA can assist you in navigating
the myriad of choices, helping
you choose a corporate entity
that best fits your business and
financial goals.
A well-built and well-run entity
separates an individual with a
hobby, from an entrepreneur
with a business. In the eyes of
the IRS and the courts, a sole
proprietor and a structured busi-
ness are treated vastly different
in taxation, and in assessing
and separating business and
personal liabilities. Corporations
a few more webpages and prints
himself a gross of business cards
with his name proudly preceding his
freshly minted title, “President and
CEO”. The second type of hobbyist
recognizes the inherent pitfalls of
purchasing pre-made forms online
and instead, calls one of the many
structuring firms offering to fill out
and file your documents for a fee.
This second-tier service provides the
hobbyist with a bit more information
while upselling him on products that
cost a lot, but offer little in return.
With false confidence and minimal
information, the hobbyist operates
his businesses blissfully unaware of
the rules of corporate governance.
Comingling business and personal
funds, signing documents in his
personal capacity, failing to hold and
record annual meetings are a few
grievous mistakes that makes it eas-
ier to “pierce the corporate veil” and
bring crashing down the protective
wall separating the business and
personal assets and liabilities.
In comparison, the real estate
entrepreneur not only understands
the importance of having a cus-
tom-tailored structure but seeks to
educate himself on the proper way
to operate the structure to achieve
maximum benefits. The real estate
entrepreneur understands that a
properly operated entity protects
your business operations and assets
from your personal liabilities and
vice-versa.
Being the defendant in a civil
lawsuit is the wrong time to consider
whether you should form a corporate
entity to protect your assets. For-
tune DNA focuses on action rather
than reaction; building corporate en-
tities to prevent future calamities. >
are entitled to tax deductions that
are not available to the sole propri-
etor. Also, an individual may carry
losses forward for three years, while
a corporation can carry forward its
losses for an incredible 20 years. As
for Nevada’s corporate tax, there is
none. As for liability, a Nevada en-
tity with properly drafted By-laws or
an Operating Agreement protects its
Officer and Directors, or Managers
from personal liability for lawful acts
of the entity.
A business market niche that
epitomizes the difference between a
hobbyist and an entrepreneur is real
estate investments. The hobbyist
may have set up what they believe
is a corporate structure, going online
and purchasing pre-packaged, dis-
count services that promise much,
but deliver little.
With the click of the mouse, the
hobbyist believes that he is now of-
ficially a business. Flushed with ex-
citement at starting his own “compa-
ny” and patting himself on the back
for making the executive decision to
save a few bucks, the hobbyist visits
Fortune DNA, a boutique Las Vegas, Nevada structuring
company, focuses on custom-building corporate entities
for their clients depending on their specific needs.
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PAGE 107 • 2017

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